what a bozo. we are going to play fast dominoes, walking to new orleans, of course, a huge hit, and i remember when it was debuted on kfwb in los angeles back when i was probably working for the railroad, and the big news was it was the first record in which they used violins. ♪ ♪

♪ ♪ ♪ >> the new normal, the headlines from this morning's job report.

i'm charles payne, and stuart's back monday. 150,000 new jobs created in january, not enough to didn't the unemployment rate that jumped to 7.9%. just bumping along right there. the participation rate was unchanged as there was more people out of the labor force in a troubling signs today from the "wall street journal," and tw thirds of the people from 40-60 is working longer. who is dropping out and giving up? the nation's youth. the consumer confidence and the economy that's actually shrinks, well, harry reid says this is a recovery. okay. we'll talk about it. "varney and company" is about to begin. [ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need

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charles mckinney a -- charl: a bomb goes off in tour key, killing two, one expected to be the bomber. the bomb went off inside the security perimeter. no damage to the embassy reported, and we will bring you

update to the story as they come in. now, of course, let's introduce the company, start through the first hour, all the big news, cheryl casone on set, and, of course, nicole on the floor of the new york stock exchange, both wearing red. back to the big story, only 157,000 jobs created last month. definitely not good enough, but don't tell that to senate majority leader reid. this is what he had to say about the nation's economy that slunk in the fourth quarter. >> mr. president, a brief comment on my republican leaders' statement. he continues bad mouthing the recovery. we are in a recovery. charles: no growth, few jobs, and consumer confidence spiraling. nothing like any recovery i've seen, cheryl. cheryl: revisions were nice to see, but overall, look at the numbers that we're talking about

here. 100,000 jobs, 150,000 jobs. we need 300,000 jobs, 4 million jobs now to get the country back to where we were four years ago. we don't have those numbers. why we celebrate this, today's overall, the numbers just don't -- 183,000 was average for 2012. we need 300,000. charles: right. we are starting to drift from last year's average, already out the gate, celebrating mediocrity can be dangerous. by the way, notice you're digging deeper at the pump? national price is up 13 crepts since last week. overnight, the price up four sents, $3.40, seven cents in two days, and diesel up to $3.94. why are gas prices moving higher? look at oil. it's on fire to the upside. first response to the jobs report, well, not good enough. we're just not getting america

back to work fast enough. former economic adviser, president obama, joining us next, and i'll challenge him on this point he made last time he was on with stuart. >> that's because for after we get through a period of slow population growth and the baby boom being born, we've had an aging population for some time so i think the fact that there is a group of people who dropped out of the labor force and have not come back is the weakest part in the job market. [ male announcer ] you are a business pro.

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suddenly, faraway places don't seem so...far away. ♪ concern until the opening of bell. futures are much higher. they look like the fix was in. a great number the market would have gone up on great economic data. acl/cell number the fed keeps printing. how much longer will it take it a new high on the dow jones industrial average? the bells ringing right now. a lot of cheering, people always happy when there is a new opening but also happy because, pieces of economic data out this weekend all three below estimates and the market looks like it will have a big day today. maybe exxon mobile, netted $10 billion in the quarter,

after paying $24 billion in taxes in 13 weeks. where are those shares operating? nicole: let's take a look, shares are up slightly, up 1/2%, oil around, earnings have been on the rise, earnings rose 5.9%. chemical and refining earnings provided a boost and where they did see production fall to three year lows. is a big tax payout. charles: those devious deal oil--oil companies courting the money. thanks a lot. it was january to remember for markets. it has been huge but not so much for apple shares. stock down 14% this year. and flat over the past 12 months. it has been tumbling and you see is that $2.34 hovering around at 450 area. a different story. for the blackberry that is a 9% in january all bound down 24% over the past 12 months.

at stock has been extraordinarily volatile up $0.43, $13.40. we will keep an eye on them for you. the jobs report we want to bring in austan goolsbee, professor at university of chicago school of business and former white house economic adviser in chicago. thanks for joining us. your initial assessment of the jobs report number? >> rider around expectations little little below. it is what i was predicting. i think this just reflects the fact that we're growing about 2% which is modest but not terrible, it is not good and that is where we have been stuck for the last year and a half. charles: you teach about economics. at some point shouldn't the recovery much stronger than this? >> you want it to be. coming out of a big financial

crisis, usually the recoveries are not robust kind -- [talking over each other] charles: this is the worst post recession recovery in history. >> second worst after the 2001 -- after you get into -- when you come out of bubbles, it usually takes a fair amount of time to come out of it. the last two recoveries have had this feeling of we are not growing fast enough to set things on fire and that is because the economy can't go back to doing what it was doing before the recession began. charles: wants to talk about the human face behind these numbers. we throw the numbers of all the time and this is what bothered me. two things that stand out to me, 27 weeks unemployed, 4.7 million people. are we talking a new permanent underclass of people, formerly proud american workers who will never get a job again or get a job that is substantially below what they were making and what

they're capable of? >> i don't think it is permanent but long-term unemployment problem is the worst part of the job market that you have got increase in the labour force participation from people who got discouraged and people who have been out of work for literally years at a time. that is a tough nut to crack because it will involve changing of industry, retraining likely to see some wage cuts. we got to deal with that. cheryl casone. cheryl: i want to ask about the president's decision to shut down the jobs council. you didn't speak much about it at all in his inauguration speech. did you at some point advise the president adopts council wasn't worth pursuing or if you were still in the white house would you advise him to make that decision yesterday? >> it was scheduled to go for two years. you would have had to do some

active change to recreate it or renew it. the economic recovery advisory board which was for the first two years and i was the chief economist on that more into this, the jobs and competitiveness council. was a bipartisan thing, by design. you had a bunch of people -- [talking over each other] cheryl: four times. [talking over each other] cheryl: 7.9% unemployment. >> that is not correct. that four times for large meetings and they met scores of times for their regional meeting. the problem was unlike the other several hundred advisory committees to the president, this one became political, right from the beginning and one of the main reasons they didn't meet at the big public meetings was the fact that the executives themselves did not want to get put in the middle of the presidential election. so the export council, there are

many councils made of business leaders that they should continue, they want to continue business, this one got overly political land was uncomfortable for a lot of them. charles: back to looking forward. some of these trends are very alarming. last time you were on the show you mentioned participation a moment ago, for me the participation rate among young americans has been spiraling significantly lower and on the flip side of that older americans have been coming to the job market. last time you were here you indicated we should be worried about national attrition but the fact of the matter is older people are working more, jumping back into the job market but young people have given up on this. you think there's encouraging to give up on this? do you think -- why is this happening? >> that is conflating a few different things. among young people there is no question it is because the unemployment rate is high among young people.

you have seen a lot of them going back to school trying to find other things to do because they can't get a job. that is a disturbing part of the number. what i had said before and remains true is of the big drop in labor force participation, more than half of its is from the aging of the population. overtime you would expect as people get older they will be more retired than the baby boom starting to pull out of the labor force. however, the other 40% of the decline in labor force participation is part of what i am describing as the weakest part of the job market. that is the thing we should be highly concerned about. it is the same problem of long-term unemployed, fewer people entering the work force. that is the tough part. we have got to address that. charles: we have to address all of this weather is the worst for second worst it is unacceptable to most americans and dragging on a long time.

you are a straight shooter and we appreciate when you come on. thanks a lot. let's get back to nicole petallides. netflix shares are higher today. what is going on? nicole: netflix jumping, morgan stanley, the latest analyst to get on board and talking positively about netflix, a new price target of $200 up from 160. we remember that this stock is up 200% last six months. charles: the answer is yes, just coming across i saw where their sales were up 22% year over year. how is that impacting shares? nicole: stock is up 1%. lincoln branch did not do well but sales for january were up 22%, the best since 2006, the ford fusion, the ford escape posted record january sales and you know that the truck always does well. charles: i am looking at a truck

myself. time to put standard and poor's on fantasy island. and the housing boom, they go back because california, the rating agency saying the raising taxes is going to help fix the state's budget and upgraded at state's that level. we are talking all the companies and all the people that believe in that state because of higher taxes, overregulation, use of hot water phil mickelson got into, we should back out the state is still, there is still out -- there's a state worse than that and that is illinois. we will talk about that in the next hour. we love hearing from you particularly today, and -- send your e-mail to varney@foxbusiness.com. we will read the money as they come in. seven early mover is. i want to start with sierra, beat the estimates top and bottom line, stop looking good today, $6.60 one cents in august of 2000, 26,000 shares, my every to be upset. home builder revenues of 43%.

the ceo said the housing market recovery is real and solid demand through january. next week record revenue for this company also gave good guidance for fiscal year 13. at stock is up a little bit. let's go to national instruments. another company posting new numbers, record annual sales, quarterly numbers for the record also, they do software for virtual instrumentation that gained solid guidance to the upside. chinese travel agency company beat on top and bottom lines, domestic travel picking up, that is a big gain over 10% and the stock is breaking out. dell. we haven't talked dell a lot of the deal is getting closer and closer. michael dell, there's a lot of pressure for a bid around $16, for them to steal the company. finally, audience. this is always considered an apple play. somebody said we are rocking and rolling with or without apple and getting a lot of orders from samsung. at stock in the top percentage

gainer for the session. cheryl: you missed marathon petroleum. if you are not going to give yourself a pat on the back i am going to do it. i called that one. you came on to the news show markets now instead this is the stock i like and the numbers come out and the revenue. charles: the stock has blown up. someone upgraded this morning. appreciate it. our young republican on why so many in his generation are being supported by mom and dad and why can't they just get out and get a job. sad news report on the passing of an icon. former new york city mayor ed koch served three terms, died this morning from heart failure, rescued the city, everyone gives some credit for that from near financial ruin in the 1980s and did it with tough fiscal policies. the 50 ninth street bridge connecting queens to manhattan was recently named after him. ed koch was 88 years old. (announcer) at scottrade, our clients trade and invest

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stuart: markets open up 84 points. not a bad start to the session still under 14,000. node job and still living with parents or in the basement. a new queue research center survey shows middle-aged parents are increasingly providing more financial support to their grown children. joining the company is charlie kirk with independent free-market group. turning point usa. you don't think it has to be that way, do you? >> not necessarily and are two sides to why this is happening. there is a policy side and the cultural side. in the policies of obamacare was passed and young people can stay on their parents' plan until they are 26 of the cultural side

is parents are accepting the notion that kids can stay long run longer at home and there's an attachment to that but they don't want their -- they want them to stay home and there's a big problem with that. i know kids that are 29, 31, still living with their parents and the job market is not that great but there has to come a time when they take personal responsibility and get back in the job market. charles: let's go with the policy side first. the president got a lot of young votes by touting the fact that you can stay in the basement of your parents and i have got you covered especially things like medical and don't feel guilty about it, don't worry about it. that is a huge impetus, a huge reason for kids not to want to move out. we are really talking 24, 25, 26-year-olds. how do you overcome that? how does your generation get over the idea that i should get out? i hear what you are saying but how do you penetrate your friends? >> we need to talk about a

couple words. opportunity, prosperity and a entrepreneurship. the things young people can understand with opportunities big one. young people want to be as successful as they can be but they want a free market and we explain that in the correct context and they will understand the tenets -- charles: explain it for the young viewers and the right context. those things make sense when you say them but why is it not resonating? what do you say to young kids sitting here right now the don't believe you? >> my argument is this. the want to be as successful as you can be? they want to be the next bill gates or mark zuckerberg? we need to ask those questions and young people and understand it but a big problem not necessarily with the conservative movement is don't focus on social issues. that clouds the fiscal truth and young people resonate with fiscal issues. 80% of young people i talk to can agree that capitalism is the most prosperous system for us in the future. when you start to get to issues of marriage and abortion they

turn off and don't listen to the fiscal side. full young viewers -- here's what i say. capitalism works. it is moral and if we enact the tenets of free-market entrepreneurship we can be a prosperous country and you don't have to live in your parents' basement into your 35. charles: detractors say capitalism is not moral, we have run into a lot of boom and bust cycles and the rich about richer and the poor have gotten poorer and it is not fair. that is the central theme of the president's reelection and his first election and last year i found it interesting webster's dictionary break the top ten words of the year and for a tie was capitalism and socialism. a real tug-of-war going on right now. on the other side, with the parents, you think they want their kids -- don't want to leave? is a physical law attachment that other generations didn't have? why is this generation so clinging to their kids? >> there's an interesting dynamic and a cultural aspect parents are staying attached to their young people but they

don't necessarily want to see them go into a terrible job market and the unemployed. there is a harsh reality. i remember my dad saying there were years he had to make it himself, his dad did not pay for everything until he was 29. there was a time he had to take a minimum-wage job and live in a neighborhood that wasn't as luxurious as the one he grew up in and we are losing that with the younger generation. we don't allow them to fly on their own. charles: there was a time we all did that. was expected of us and that is why america became the greatest country in the world. you have a tough battle ahead and i'm glad you are fighting. we just got the white house's statement on the jobs report. once again the exact same thing it was last month which was the same as the month before. all they did was change the date. more work remains to be done, today's employment report provides further evidence that the u.s. economy is continuing to heal from the wounds inflicted by the worst downturn since the great depression. have you heard that before?

cheryl: as i am looking at the markets and watching the dow we are hitting a level of resistance here. this jobs report was so blockbuster, we would be at triple digits right now and we are not. you got a market trying to go up to 14,000. charles: times rear morning will report, gold looking pretty strong this morning at $16 and the street thinks the jobs number was at and then keeps printing. here is a good question. how much do you tip when you go out to eat and do you agree with the automatic 18% it passed off of big parties? next the story of a customer who wrote her objection on her receipt and the waitress who was fired for posting it on line. [ male announcer ] where do you turn for legal matters?

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charles: sounds like the beginning of a joke but it is not. a pastor walked into a restaurant with a large group of people, get a bill with an automatic 18% hit. she objects. crosser is out the 18% and writes in a 10% tip saying, quote, i give guide 10%. why do you get 18? as a form of protest the waitress posted it on line and back up after complaints, the

waitress is fired. cheryl: this happened in and appleby and it is a bad move for the manager of the restaurant to fire this girl. there is nothing in the employee handbook that appleby is that has anything to do with that. he doesn't break any rules. factually has a case here if she wants to go after appleby is and she's now a national media star. a party of eight people, what is wrong -- charles: what about a party of four? cheryl: the standard is 6 for most restaurants as far as i know. wait staff depend on tips. they make small hourly wages and depend on tips. if you don't want to tip, why write a nasty note on top of that? it was in poor taste. charles: 24% of wait staff have college degrees. two stake in bad financial situations.

we start with california, sharing positive news with an upgrade from standard and poor's. we will for some cold water on that but don't forget illinois, the king of all red ink states. the place where it is expensive to borrow money next. twins. i didn't see them coming. i have obligations. cute obligations, but obligations. i need to rethink the core of my portfolio. what i really need is sleep. introducing the ishares core, building blocks for the heart of your portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. all stations come over to mithis is for real this time. step seven point two one two. rify and lock. command is locked. five seconds. three, two, one.

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s&p basing decision on more revenue coming in from jerry brown's tax increases, but when states raise taxes, people leave. 3.5 million people left california in the last two decades alone, and that, is according to the "wall street journal," and looking beyond the upgrade, california still six steps away from the highest rating possible. it's not even s&p's a-level yet. the cork in the channel pin, hold the confetti. a model for the nation? we certainly hope not. ♪ all right. get right to the so-called california comeback. with the company, gerri willis, fox business, fox news critter, monica youley, annie coal from the new york stock exchange. monica, asking you about the red

later why you don't have it on. >> i know. national television. charles: i'm sorry, right out of the box, getting to california. the upgrade, the revenue the state might bring in from the tax increase, but we say they are far, far from fantasy island. starting with you, monica, just this whole thing, every time the guys raise taxes and make assumptions they get the money, they never do. >> right. what we've seen in decades in states like california, that the revenue base leaves. high net worth individuals, businesses leave the state to go to business friendly states, states with no state income tax, states with lower business taxes, and so on. this is a projection into the future, and the assumption built into the perception is that all the high net worth individuals and businesses stay to produce the revenue needed. that's a huge assumption. there's already a huge exdoes. >> this reminds me of 2007 all

over again. charles: yes, thank you very much. >> agencies can want, for the life of them, keep optimism out of the forecast. remember cmos? they thought everything was just fine, and now they think it's fine with california. you know what california needs? california needs today's ed koch, that's what they need. ed brought new york back from bankruptcy. that's what they need today. they have $240 billion in pension debt sitting on their books. charles: ed was not afraid to hurt people's feelings, and we live in a world now, in this country, where it's all soft landing, touchy feely, americans buy into it, and credit ratings buy into it, ratings agencies buy into it. >> we have evidence over decades that the state level, the national level, at the international level looking at western europe. jerry brown is old school leftist ideology. he rarely comes out of the 1960s and believes in higher taxes,

more government spending. he's raised taxes. we will see what the result is, but, again, we have empirical evidence all over the place that it ends in disaster. charles: what's interesting is the golden age of california was revitalized with the tax revolt. you know, 79-80, and that brought back prosperity to them, and back full circle, again, doing these -- prop 30 is crazy. by the way, people think, oh, california, just taxing the rich. if you make more than $48,000, you pay 9%. that's crazy. that's e enormous. >> out of control. illinois has big, big problems. couldn't float debt this week because they were downgraded. if you want to see the future of this country? look at california, look at illinois. we are walking down that path. charles: gerri, you studied this stuff. false assumptions they make, when the money doesn't come in, what's the next move?

>> here's what i think. places like california and illinois turn to the federal government and say, hey, taxpayer, hey american taxpayer, pony up because we can't pay our bills, and you owe it to us. charles: the american taxpayer has to tell the guys, well, make your own national anthem. we ain't giving you nothing. all right. california is not the worst state. when it comes to finance, that's illinois. the state is broke. just in state worker pensions alone, $96 billion in the red, and they just had to cancel a $500 million bond auction because it couldn't afford the high interest, but last march, the governor's spoke person said the state would have no problem borrowing money. remember this? >> it also is a fact that you are paying more in interest to borrow money. >> that's not true at all. that's just not true. >> i know what i'm talking about. >> well that's great, but we issued bonds in january, a $525

million obligation bond with interest of 3.9%. the lowest rate that illinois received in 40 years. >> that illinois receives, yes. >> how times have changed. joining us the illinois policy institute. you know, john, starting with this aborted effort to raise money. there's a series of red flags, but if people were not stirred over this, what would jar them? >> i think this will have a real impact, charles, and you covered the bond ratings well. those are predictors of not good policy solutions. we had more bad solutions from democrats in control of the state, and what the people viewing us today should worry about is that illinois, like california, is an indicator of what's coming nationally. we're following the exact policies that the federal government is pursuing, and we'll become greece which is dangerous.

charles: that was said on more than one occasion as well. what from here? offer more interest in i mean, what do they do? the state is in a real procare yows predictment right now. >> right. not so much the interest rates, but pay a premium, highest interest rate of any state in the country to borrow money, but the bond issue was withdrawn because they were not sure anybody would buy the bonds, which, of course, catastrophic to go forward and not have it subscribed. the real issue here is the people in control in springfield have two choices. one choice is to actually face the music, reform entitlements in the form of employee pensions, as you mentioned, $96 million, if you do a true rate of $200 million, and reform it, or follow the california model and do fake reform and hope the credit agencies buy the trick. we're hoping and working on real reform. charles: hold it right there, john. you can see right there, we just hit it, 14,000 on the dow jones

industrial average. imagine what happened if we had good news. although, i think a lot of people, we got there because they think the feds going to keep printing. gerri? >> when you talk about illinois, what role pensions, what role unions have in driving the debt higher, and why we can't get the pensions and unions in particular off the government peak, why not reduce the obligations to the big, big fat and happy unions. >> well, the unions are in illinois and around the country are the biggest funders of politicians in the country, and in illinois, they give 70% of the money to democrats, 30% to republicans. they negotiate with people they funded to put in office, and they have high influence as a result. the biggest employer, five of the top six employers in the city of chicago are government, mostly unionized workers with tremendous leverage over the political process is the problem. here's the key thing. the key thing is the union leadership and the politicians are not telling the truth to the ranking file workers. unless we reform the system --

charles: john, hold on one second, hold that thought on truth, but i want to go down to the floor of the new york stock exchange, back to nicole. dow hit 14,000, what's going on down there? >> wow! hey! don't you feel great about dow, 14,000? i mean, come on, americans have been through so much over the last several years. we were at dow 6500, and home values were down, jobs were being lost, dividends cut, no good news, and here we are back at 14,000. i mean, you know that everybody's saying, yeah! charles: listen, i got to tell you, obviously, people feel good, watching the show feel better when they open the 401(k) statements, but, also, nicole, a lot of people just don't believe it. they just don't know saying it's smoke and mirrors. it's not possible. it doesn't correlate. it's tough. what's the feeling on the floor? euphoria? >> they think it's great, it's great we are running up, and now doubt the market was overbought and pullback was likely, pulled back a bit, but here we are,

jumping to the 14,000 mark. a lot of wait and see on the jobs, but the dollar has been lower. that helps things along. charles: all right. thanks a lot. obviously, we'll be back to you shortly, but i want to get back to john. john, okay. you know, disinjen ewous part of it, the pr aspect of it. the democrats winning that battle. what happens next, though? what's going to happen in your state? everyone here, all the experts in this area that believe, ultimately, you guys go hat and hand to the federal government and get a bailout. >> well, we've been working hard to prevent that. that would be tragic for the rest of the country to bail out our state, spending too much money beyond its means. the only way for it to work, each state, good or bad as the says goes, be accountable for its behavior. the federal government should not bail us out. senator durbin will not support a federal bailout of the illinois. we have to face the music ourselves. we have to reform pensions to protect current workers and

retirees for what they already earned and convert them to a program going forward. this is what we proposed. there's currency in the legislature, but there's an alternative that's fake reform that we're trying to defeat. charles: accountability. that's the theme that probably should resinate across the entire country. thanks, john, appreciate it. well, the dow just hit 14,000, and despite the ho-hum jobs report, only 157,000 jobs creates last month, not good enough. let's not forget the economy shrank last quarter. guys, monica, i'm sure you're wealthier than a couple years ago. >> on paper. charles: on paper, but not confident about it. >> no. it's obviously, good news, people look at the 401(k) statements and be energized and heartened by it, but it's not the first time the stock market is divorced from the broader economy. the other indicators are down, other than housing, a good sign. the unemployment numbers we got today, 170,000 more people just dropped out of the work force

last month, 8.5 million people are not working today who were working with barack obama became president. when he became president in jan of 2009, four years ago, charles, it was 7.88, and now $4 trillion later after unprecedented simulateed stimulus, we're at 7.9. we're in a downward spiral. could be looking at the other session. charles: consumer confidence number worry me. people hit hard with the payroll tax. yesterday, did you see how much money people made in december? the most money -- the biggest month over month because of dividends, bonuses paid up front, but consumer consumption was down dramatically, and savings went to 6.4%. >> in the holiday season. charles: right. the average person out there always has -- like, it's the average person on main street

has a better instinct for the economy than the market does, and to your point -- >> let me tell you something, i think that the really good news is is in the rearview mirror. you saw the revisions jobs number. that was december. that was november. that's not looking forward. talking about the payroll tax, the hike that people have saved, that's really going to hit january and february, and march. one down quarter of gdp. we could have another. that could be a technical definition. charles: a lot of trepidation in the next few months. switching gears, a bill in tennessee, in the legislature to ban adversity programs on college campus,. joining me is the republican, jim, and representative summerville, when i saw the story, it was intriguing. i don't know how to feel about it emotionally. what are you achieving here? >> let me explain your statement on the bill. it needs qualifying.

i don't want to bandy versety programs. i want to abolish preferences. points given to people who apply, x points given because they fit in a certain category, race, gender, ethnicity. that shouldn't be necessary. the only qualifications should be academic background and willingness to work hard for the coast of -- coveted deploam ma. >> i don't disagree with that. what about points if your mom and dad went to school. cut those? >> no, sir, just covers race, genter, and ethnicity. charl: you're going against the grain with respect to the trends in the country, at least the politically correct trends. what makes you think it's the right time to introduce something like this? >> well, it's been two generations almost since martin luther king walked among us and said let's judge people by the content of the character, not the color of their skin. if dr. king were here today, he

would be sad because we judge people by classifications, categories, and select groups. we want to judge people as individuals, and people are people. my state wants to be appreciated for what they can do and how they work. we don't pay attention to anything else. charles: thank you very much. we'll watch how that progresses. appreciate it. >> thank you, sir, thank you. charles: investors putting money behind spending on their pets. that's next. ♪ have given way to sleeping. tossing and turning where sleepless nights yield to restful sleep. and lunesta®(eszopiclone) can help you get there. like it has for so many people before.

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charts: dow hit 14,000 a few minutes ago, pulled back a bit, but hovering there, right now 13,994. another big economic story, jobs report this morning, the headline number, under 57,000 jobs added in january. unemployment rate rose to 7.9%. the labor force participation rate unchanged because, well, there were more people out of the labor force. of course, the white house released the statement on the jobs report, exactly the same as last month saying the economy is growing, and that the policies are working and continue to blame president bush. january sales numbers, up 22% year over year, best since january of 2006. shares up a fraction here. general motors up 16% year over year, and shares up slightly as

well. people spend money on their animals and pets all the time. we have a ceo to prove it.cus or ♪ ♪ [ male announcer ] you are a business pro. omnipotent of opportunity. you know how to mix business... with business. and you...rent from national. because only national lets you choose any car in the aisle. and go. you can even take a full-size or above. and still pay the mid-size price. i could get used to this. [ male announcer ] yes, you could business pro.

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charles: got to be excited. i have to tell you something, we had a lot of puppies in the green room because of the puppy bowl coming up, and we love the pets more than ourselves, don't we? >> i thank you for having the puppies, and also taking care of the puppy. charles: makes you a lot of money. how big is the business, you know, med sips for animals, how large is the business? >> well, this business is now more than $4 billion, and we reported 4.2 billion in revenues, and it's combining not only medicine for animals, your pets, but swine, poultry, sheep, so you see that we have heidi versety of -- high diversity of products to keep them healthy. charles: they sell chicks, everything you talk about, they sell them, and you guys keep them alive. i have a pet yorkie, fat joe, he

has diabetic. his medicine is so expensive, is your business to immune to recessions? >> i think, well, it's growing. it's growing now because of people are growing in the world, and also, the middle class is growing, and more pets, and spending, really, money to keep the animals healthy, and now it's really a public company. we have this to reach customers around the world, reaching customers in developing and emerging markets. it's unique. we have -- [inaudible] carls: the stock is public, trading 18% already, and, again, in my household, we spend money on the animals and pets no matter how much they cost. appreciate it. >> thank you very much. charles: thanks. blackberry all in on the new smart phone.

new tech expert, clayton morris, got haps on one, and he's on set after the break. he was not too impressed earlier this week. the question, though, has he changed his mind? >> up against the same pressure now. if they have a wow operating system, they might be able to carve out a little bit of the niche and gain a foothold, but up against samsung, apple, and android and the iphone, you're in a world of hurt. i think they are many years behind. ♪ [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ]

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>> there's an attachment to that, but they don't want -- they want them to stay home, and there's a big problem with that. i mean, i know kids that are 29 and 31 still living with their parents. granted, the job market is not that great, but there has to be a time where they take personal responsibility and get back into the job market. charles: talking about people in his generation living off his parents. this starts at 9:20 sharp. we pulled back a little bit after hitting 14,000; still, though, within striking distance. fox and friends clayton morris, with the new blackberry ten. your official assessment is not great, but you had a couple days. what do you think? >> the initial assessment was

before the press conference, will it be earth shattering to carve out a share they need right now. they are years behind the ball. saw what microsoft did, trying to carve out with the windows phone, and the press conference unfolded, and they rolled out a really solid operating system in this blackberry 10. i have the z10 right near, and it's their first touch screen model that's not a capacity screen. it's just like you'd normally see with an android phone or the iphone, and there's no huge wow factor with this phone. charles: they needed that. >> they need the the wow factor. you have a flow feature, lets you go through all the apps, and you never hit a home button to go back. they have two new solutions. you don't have to carry multiple phones. that's a big frustration; right? a blackberry for work and android phone in the pocket for perm use. they have an idea, brilliant, that you can switch between two

interfaces, personal and work, and your company's cio can have access to the work side of it, but not your personal side of it. it's nice, but, again, years behind the eight ball here. i don't see them being able to carve out a spice. >> i've been waited with baited breath for the review, because as you can see, i'm a blackberry girl. i enjoy the keyboard. now they have the keyboard version. have you seen that? >> there's two phones. this is the touch screen, and the other, you'll love the new keyboard blackberry with all the functionality, but with that keyboard, great for the legacy customers that love blackberry, but they need new customers. even if they try to get two million new subscribers or people buying a blackberry, that's like what android activates in an hour. those are the numbers you're up against. when apple sells 50 million iphones last quarter, and

android activates millions of new customers every day, you'll have a tough hill to climb. charles: a tough hill with the presenter, the ceo, he was just underrealming, and maybe james bond drives a sez something, i don't know. there's a big marketing push. >> they have, and the phone's not available. they see it in america, i want it the next day, they have to wait 30 days. it's just how problem mattic this company is? >> that's a huge point. what do we have coming up? mobile world congress in barcelona. it could be thee conference you to do go to because of the mobile rollouts happening in barcelona. there's mobile world congress taking place before these are even available to buy so we have the big press conference, mobile

world congress, and a month later, you get your hands on this. there's going to be new technologies. the samsung s4. charles: wildfire we go, quickly, my hunch is the only thing that happens is the stock pulls back and unhappiness stock pools back and eventually acquires a couple bellwethers. >> i think you are right. they have a nice operating system here. we thought apple's calm operating system and doubled up and wouldn't be surprised. charles: time to forget about being politically correct and do the right thing. mike lee to president obama. all stations come over to mission a for a final go.

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charles: new numbers tell us the cheapest health plan for families under obamacare, will cost $20,000 by 2016. health-insurance repay a penalty. and how much families will and how much they will be penalized if they don't pay, $20,000 is the number. let's get back to the jobs report, 167,000 jobs created last month. joining the company from washington, paul conway, former

labor department chief of staff in the second bush administration and president of the, a group. thanks for joining us. i want to get your initial assessment of the number as it came out. >> expectations with kdp and numbers is for more but this is not a good sign to be a 7.9%. this is not going in the right direction. charles: there are a lot of aspects of numbers that bothered me. one is chronically unemployed, 27 week plus, four.seven million. i see those as people who used to work on assembly lines, used to make good money, could send their kids to college, proud americans and they will never be in that position again. >> you are one of the few folks out there and stuart varney also talking about this. critically important for people to understand. there is a new strata being created not because the individuals want to be there but because of the results of government policies. this week you cannot with a study showing one of seven

parents ages 40 to 59 are providing direct financial assistance to their kids and of those, one third of those kids are out of school. as the image think about that. the impact of the unemployment is tremendous, not just on young americans but going across the labor force and if you look at the folks you were just talking about there are working americans who want to go to work. that is what they aspire to do. >> we are now officially in the worst u.s. recovery, in u.s. history. when you compare, when you compare the reagan recovery to what we're seeing now, reagan was generating 500, 600,000 new jobs, one month actually when we generated 1 million new jobs. unemployment, but really rapid time. reagan did represent of what obama does, cut taxes, rolled back government regulations, the exact opposite. we had the exact opposite result in terms of recovery.

>> absolutely, a couple other things happened this week. we found out the president's standing is much touted jobs council and after not eating for your got rid of that and we also learned 44% of americans, one pitch away from personal bankruptcy. when we look at what ronald reagan did there was policy, based on principle but the other thing is his language was important and that of the administration, did not go to war against people who create jobs, especially small business whereas you know that is where jobs are created in recovery. charles: where do we go from here? it feels like policies are in place, policies are getting worse and the tea leaves suggest we start 2013 off with a very conscious country where people are cautious, businesses cautious and bumping along like we have been is a dangerous place to be. >> here in washington and in state capitals and especially state capitals is happening with many governors.

as long as there's a conversation about the debt, lowering the debt has to be a conversation about what creates jobs and job creation and the impact of government policy on negating job creation. republicans and conservatives need to talk about that because that is what is talked about around the dinner table, social media, the debt is important but job creation is a practical issue people go through every day. you see very proactive governors in states trying to attract business and bring jobs into their states and being very positive in their message about the aspirations of people and what they want to do. people need to hold the president accountable. charles: you are exactly right. we appreciate it. charles: changing topics. with stuart varney out, he doesn't have my cake but here's my plea. dear mr. obama, this week, shot and murdered in chicago after performing with her high school

marching band at your second inauguration. she was a major red in addition to playing volleyball and being an honor student at college prep high school. my plea is that you attend her funeral is my plea is that after the funeral you address the entire nation in prime time and discuss an epidemic that is eroding the nation and destroying millions of lives. this is a real epidemic of violence in the black community. no better example than your own hometown of chicago, it is time to stop using the false pretense that you are the black president for showing true love and caring for black people. take surely chambers with you to the funeral. use well practiced in freedom. last saturday few austrian descent to violence, the last four children live. all have been murdered over the past 12 years including her 15-year-old daughter. mike lee to you is you are honest about what is happening and not afraid to be honest about where to pin the blame because we've read real

solutions. if you commit to this with all your heart and soul maybe we could get real change and mothers in black neighborhoods will not have to hope the children come home from school or a local concert. during your inauguration you quoted a team, individual freedom is inextricably bound to the freedom of every soul on earth. if this is true than more so for americans that american lives. time to forget being politically correct and do the right thing. my plea to you is to deliver the people who believe in you most more than floury words and economic assistance. weaken the -- we can't be free if we are killing each other. ♪ [ male announcer ] every car we build must make adrenaline pump and pulses quicken. ♪ to help you not just to stay alive... but feel alive. the new c-class is no exception. it's a mercedes-benz through and through. see your authorized mercedes-benz dealer for exceptional offers

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charles: it was announced this morning, it will release a successor to playstation 3. fans will see the future when the game council is revealed, sony announced the gaming system, and competitor microsoft, americans will always spend money on their heads so pfizer jumping into the market. the spinoff this morning talking 18%, they sell a lot of things including pat magazine to a variety of pets for that stock. report said dell is getting close to to deal with private equity firm. sources say the deal could be announced as soon as monday. shares of dell are up 1/2%. they had 14,000 for the first time since october of 2007. the dow is up 123 points.

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animals and they had to raise prices and coming out with a great quarterly report, looking good. and 2007 also this high in july of 2007. charles: thanks a lot. you can bet on pretty much anything in the super bowl game between the ravens and san francisco 40-niners from who is going to score the first touchdown to how many times something will be said in a telecast. the sports book executive director in las vegas, what is the biggest bet, what are people betting on the most? >> nothing will surpass the game. the point spread between the baltimore ravens and san francisco 40-niners will grab at our property 80% of the action. all the other events will grab 20% between the mall. charles: is that how the profits were? 80% from the main bets or do you clean off some of these weird bets on the side?

>> you never know how you will end up until the day is over. we have had days would point spread worked and if i was the fortune teller i would be on the other side of the counter. >> we are interested in how people spend their money. i you seeing more bets this year, the ticket price has backed off a little bit about 14%. what you see in terms of the batting? >> i disagree with that. i think it will be a really good year for overall handling for the state of nevada. in the past the record was $93 million but it has been a really good year for the batters and so i think their pockets are full and they are ready to play this game. close the bookmakers are getting more creative said there are a lot of props, more money for the better, in all equates to a good handle for this year's to bubble. charles: i started this

interview -- what is the over/under? how many times will it be set on air? >> we can't do that in the state of nevada because we have to do something that is played out on the field. i will give you something off of the top of my head. charles: i thought you would say 25. >> it has been publicized in the papers. i don't know if you want to get into it on game day. charles: did that happen? do you think the executives at the network actually look at the betting and which way it is going and feel like we want to make sure we can't be accused of ever being a part of that? >> whether you like it or not they are a part of it. betting is a big part of why people watch football. market share for the game would go way down if not for betting. even though they won't admit that betting is part of it in my

opinion it has always been a very big part. charles: stuart varney is not here today but we have a feeling you guys putting a special bed just for him. is that right? >> i did do that. the stuart varney problem. there are two games, english premier games on sunday and a total of those two games, i put that, the total rushing attempt which will be more, i know stuart varney is wiki eplf has been in the country long enough to appreciate football. i thought would be a nice tie in between the two. charles: he thinks the cabinet is a rear desert. best of all desserts. thanks a lot. we appreciate it. love having you on. charles: you guys know, tell stuart varney y new york state is fracking and you responded in force. highlight the next. here's a sneak preview.

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charles: if you missed yesterday's do you stuart

varney's encounter with this gets to the 150 to send a letter to andrew cuomo urging him to ban fracking. >> absolutely. stuart: the equality epa administrator. in no case have limited determine if -- process that caused chemical's to underground water. you don't believe him. it is just wrong. >> lack of proof that really is a clean way of getting natural-gas. i want us to be able to question more. the list of chemicals used in these things. charles: you are fired up. here are the comments from our facebook page. there were no specifics, no details, no reports to show that fracking was a problem. judy agrees you won, stuart varney. i hope she is a better cook than anti fracking spokesperson. >> even epa isn't saying this is a bad thing. when you consider that and the

record the epa has done on a number of topics is shocking they are not anti fracking. i find it amazing. charles: amazing someone would be a spokesperson about something and have that little knowledge and be that and prepared. passion is one thing but to not be able to articulate it in a way that made sense, i was going to comment watching the old thing. gerri: this is a problem for the left. a lot of people on the left operate out of the motion and are now willing to dig down and find the facts. they assume it has got to be bad because it is drilling. they think all drilling is that. therefore fracking to be that too. charles: speaking of the left in this twilight zone thing terry reed says this is an amazing economy. gerri: she believes the economy is going great guns, thank you very much. that is what he said yesterday in front of reporters. it is shocking to me because we have a contraction in gdp, obviously the economy not doing that well and today's job numbers show we are getting

nowhere. the only improvements are in the rear view mirror when you look at the revisions on those numbers. we have so far to go. this is not a positive report. this is not where the in american economy should be. charles: this is what bothers me a lot. the election is over, you don't at superlatives where they don't belong. at one point not being honest with people can make it worse. creating a false sense that we are okay. gerri: people know. that is the point. people know there and experience of the economy. they trust their own debt and you brought up the numbers just this hour about how personal savings rates of gone through. they are worried about the future. it is that simple. people don't trust the noise and information coming out of watching and saying it is okay, go back to sleep, we will keep raising taxes and funding this government and sending you a check every month. charles: the inauguration of president taught nothing about business or growing economy. it seems to me to have made it

official, my legacy will be about fairness, rewriting the wrong of yesteryear, leveling the playing field, if that is how we're going to live the next four years in the going to get worse. gerri: in the going to get worse. that is an agenda stuck in the 70s. the democratic party, their agenda is about three decades ago. has nothing to do with today. today we have to find an economy that works and puts people to work. that is job number one and obviously the report today makes that more important. we have to reduce taxes so small businesses can grow. today's employment report what you saw is small businesses are adding jobs, big businesses are losing them so we have to give them help. we have to make sure those people can function, not be overattacks a small business can grow. charles: i'm worried about those big things coming up for small businesses, health care and the like, taxes and regulations. the highlight reel is next. [ kitt ] you know what's impressive?

a talking car. but i'll tell you what impresses me.

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